Sharad Jaipuria
Chairman & Managing Director
Ginni International Ltd
New Delhi
+919811083203
Tuesday, May 31, 2011
FW: News clipping
Sunday, May 29, 2011
Fall in cotton price unlikely to impact garment prices
Sarah Jacob, Madhvi Sally and Sutanuka Ghosal from ET Bureau have reported that though cotton prices are down 30% in two months, large clothing companies have no plans to reduce prices and pass on the benefit to consumers for propping up falling demand.
The report highlights the fact that raw material costs have been the biggest concern for apparel makers since August as cotton prices increased over 50% due to a global production shortfall. The raw materials account for around 80% of the garment production cost.
The report quotes Mr. Ashesh Amin, President - Apparel and Retail at SKNL, as saying that they did not increase prices when the raw material prices were going up, and therefore the price decsrease will not be across the board, but maybe considered in selected categories.
The report also quotes Mr. J. Suresh, MD and CEO of Arvind Lifestyle Brands and Retail, Mr. Pankaj Jain, retail head of Kewal Kiran Clothing, and Mr. Komal Kumar Jain, Chairman, Duke Clothing.
S K JINDAL (SR.G .M)
GINNI INTERNATIONAL LIMITED
NEEMRANA(RAJ)
Friday, May 20, 2011
Vidarbha Farmers welcomes decision to Permit 15 lakh Cotton Bale Export
Vidarbha cotton farmers who are killing themselves due to cotton price crash after the imposition of export ban on cotton bales welcome the assurance given by Textile Minister Dayanidhi Maran and Finance Minister Pranab Mukherjee to Gujarat congress delegation who met today pressing hard demand increase in Cotton export quota.as per Gujarat Congress’s statement, the delegation demanded approval of 1.5 million bale export of Cotton which “was accepted by Textile Minister Dayanidhi Maran” and it is also reported that Maran told delegation that he would call Cotton Advisory Board’s meeting and promised that export of 15 lakh bale will be permitted, Kishore Tiwari of Vidarbha Janandolan Samiti VJAS informed in press note today .
As cotton price are further crashed in India more farmers suicides are being reported the reason for much Taboo on Cotton exports from India is result of unholy cartel of finger counting textile tycoon and Union Textile Minister Dayanithi Maran which is responsible for present cotton rowers crisis in India ,farm activist group Vidarbha Janandolan Samiti VJAS allged and urged Indian prime minister to sack Union Textile Minister Dayanithi Maran to save more than 5 million dying cotton farmers of Maharashtra .
“This is not complete relief as 15 lakhs cotton bales export permission is peanut as against demand of 15 million bales but it will certainly stop the raw cotton prices restoration in local market where farmers are selling the cotton at throw away price in panic sale .we are trying to meet UPA convener Smt.Sonia Gandhi in a day or two asking her for urgent intervention in order to resolve the crisis as Textile minister initially restricted cotton bales export to 55 lakhs bales from earlier year 84 lakh bales even when country cotton production is higher by another 25 lakhs bales then ban export of cotton yarn and now surprisingly as per Quota Policy of Cotton items now added Cotton Waste ( Comber Noil) H. S. Code No. 5202 as Cotton Waste is a ‘By-product’ of Cotton Yarn. when plenty of quota of Cotton Yarn lying unutilized the hostile functioning of Union Textile Minister Dayanithi Maran has a allaowed textile cartel to include the by-product banned with a major raw material and brought under same category in the field of exports” Tiwari said..
“Cotton prices have increased from Rs 30000/candy in April 2010 to Rs 60000/candy April 2011 which is an increase of about Rs 70-75 per kg and immediately Spinners increased the price of yarn from rs 150/- per kg in April 2010 for 30s combed to Rs 230/- per kg in April 2011. increase of Rs 80 per kg which reflects in cotton value to Rs 30000/per candy minimum. Fabric weavers too have increased prices of grey fabric of 40 x 40 counts 124 x 64 with 200 gm per mtr which is quoted at about Rs 70/- per sqmtr as against Rs 38 in April 2010. There s an increase of Rs 32/mtr which is Rs 160/- per kg which in terms of candy is about Rs 58/60000 and present ban on export has brought back cotton prices to the level of April 2010 which is artificial an stage managed and Union Textile Minister Dayanithi Maran is directly involved in this scam ” Tiwari added.
‘As Cotton is an agricultural commodity and higher the prices farmers get, they will be encouraged to produce more and more of cotton and when Cotton production has grown from a low of 225 lac bales to 330 lac bales in last 5 years the undue protection to Local textile mills benefiting of buying Indian cotton at prices which are at least
lower by 30% as compared to its competitor in Bangladesh, Pakistan and other countries who buy from other growths which is reason behind the present restriction of cotton export and when Indian cotton after lot of hard work and promotion by exporters have found a very stable and regular market of its cotton in foreign countries and Govt should ensure that the markets created are not lost to competition due to faulty Govt policies.” It is alleged.
‘We need the urgent central intervention and demand to lift all export restriction of cotton bales and yarn too so that farmers get higher price to cotton ‘’Tiwari urged.
Thursday, May 19, 2011
FW: Media coverage of press conference held on 18th May 2011
Sharad Jaipuria
Chairman & Managing Director
Ginni International Ltd
New Delhi
+919811083203
From: Confederation of Indian Textile Industry [mailto:mail@citiindia.com]
Sent: Thursday, May 19, 2011 11:34 AM
To: SITRA; Prem Malik Yahoo; Adish Oswal; P.A. to Sharad Jaipuria; Sharad Jaipuria; Ashish Bagrodia; Hardyal Singh Cheema; K.K. Agarwal Alps Industries Ltd.; Mukund Choudhary; P.A. to Ashish Bagrodia; Sanjay Kumar Jain TT Ltd.; Sanjay Singhal; nitma@airtelmail.in; Rajiv Sharma - NITMA
Subject: Media coverage of press conference held on 18th May 2011
Dear Sirs,
The media coverage of press conference held on 18th May 2011 is attached.
Livemint Video Coverage:
http://www.youtube.com/watch?v=3kRz6sSKgh4
Regards,
D.K. Nair
Secretary General
CONFEDERATION OF INDIAN TEXTILE INDUSTRY (CITI)
6th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi - 110 001, India
Phone: +91-11-23325012, 13, 15 & 55 Fax: +91-11-41519602
Web: www.citiindia.com www.nsts.in
Wednesday, May 18, 2011
FW: Crisis in spinning industry - 1/3rd production cutback from May 24
| May 18, 2011 (India) |
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While lamenting that the situation is unprecedented in the textile industry, it was unanimously decided in the meeting that spinning mills in India would be closed on 23rd May 2011. From 24th May onwards, it was decided to have a production cut back of 33.33 percent (1/3rd) of existing daily production. Such a drastic step was needed to ensure a reasonable price and boost up the sagging demand for the cotton yarn.
It was also decided that a review meeting off the stakeholders will be called on 1st week of June 2011 to take stock of the price and demand position and to chalk out further action. “Our sincere hope is that with the support of the government and cutback in production the crisis situation will be blown over and the industry will be back on the rail” textile leaders opined.
Briefing the press in New Delhi along with heads of other textile associations, Mr. Shishir Jaipuria, Chairman, Confederation of Indian Textile Industry (CITI), said that a combined representation has already been sent to the Textile Minister, Commerce Minister and senior officials in the ministries of Textiles, Commerce and Finance highlighting the current problems of the textile industry.
Mr. Jaipuria explained that short-sighted Government policies with reference to both cotton and cotton yarn in the recent past have converted a profitable spinning industry into a crisis ridden sector during the last few weeks. The leaders of various associations explained that the following urgent steps would be required to prevent the current crisis from deepening further.
(i) The Drawback facility on export of cotton yarn was withdrawn on 29th April, 2010 and the DEPB benefits on export of cotton yarn was withdrawn on 21st April, 2010. Both these facilities may be reinstated with retrospective effect immediately.
(ii) An Excise duty of 10.30% was imposed on manufacture of garments. We request the government to withdraw the Excise duty on garments to perk up the consumer demand. This should be done at least till the GST is introduced.
(iii) An announcement may be made by Government that no restrictions would be placed on export of cotton yarn in future so that mills can start winning the confidence of their buyers which will now take a long time since the damage has already happened and buyers have moved to the competitors. This will also help in resuming the investments in the production of cotton yarn.
(iv) Providing 2% interest subvention for all textile and clothing products i.e. all products falling under chapters 50 to 63, excluding fibres.
(v) Since the spinning mills are incurring huge cash losses, government may consider giving one year moratorium period for repayment of loans and interest and also exempt this period for TUF eligibility so that NPAs are avoided.
(vi) Permit conversion of a portion of CC limits into term loans to fill up the gap in the CC limits caused due to sudden fall in the prices of unsold yarn and cotton and such loan should be given five years repayment period with normal interest rate and it should not affect the credit rating of such units resulting in proliferation of Non Performing Assets (NPAs).
(vii) Address the pollution issues prevailing in various dyeing clusters particularly Tirupur and other places in Tamil Nadu so that the domestic garment industry works in full capacity which in turn boost yarn sales.
Mr. Shishir Jaipuria observed that the present predicament of the textile industry is due to a combination of factors. The Government abruptly imposed a restriction on export of cotton yarn to 720 million kgs for the year 2010-11 based on an unsubstantiated complaint made by cotton yarn users of high prices and low availability.
Consequently, there was no export of cotton yarn for over two and a half months from 15th January, 2011 to 31st March 2011. This led to a huge stock of unsold cotton yarn with the mills as on 31st March 2011, considerably higher than the figures released by the Textile Commissioner in the last meeting of the Cotton Yarn Advisory Board (CYAB).
Post withdrawal of restrictions on export of cotton yarn from 1st April 2011, exports have been very tardy since non-shipment of Indian cotton yarn for over two months have diverted several regular importers of the Indian cotton yarn to other sources. Cotton yarn exporters are finding it extremely difficult to win back these buyers now. On the top of it, immediately after the withdrawal of restrictions, the mills, which have accumulated inventories have off loaded them at a reduced price internationally, which has led to price decline. Even that did not help boosting the demand on account of the steep decline in demand for cotton fabrics internationally.
“Our understanding is that exports of cotton yarn during the last five weeks have amounted to less than 50 million kgs. as against 70-75 million kgs. per month, which was being exported last year before the restriction was imposed,” says Mr. Jaipuria.
Mentioning that the textile mills are holding a stock of around 500 million kgs, Mr. Jaipuria observed that this has completely eaten into their working capital. Faced with cash losses and negligible working capital, mills are finding it impossible to buy cotton and this has resulted in a decline in cotton prices in the market. However, he added that decline in cotton prices is no indication of adequate availability.
| The press conference was addressed by senior functionaries of CITI, Southern India Mills Association (SIMA), North India Textile Mill Association, Texprocil, Indian Spinners Association (ISA), Tamil Nadu Spinning Mills Association, Andhra Pradesh Spinning Mills Association, South India Spinners Association, Annur Spinning Mills Association, Madurai Spinners Association and Karur Textile Forum. | ||
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Sunday, May 15, 2011
Vidarbha farmers urge PM to sack union textile minister
YAVATMAL: With the cotton crisis in Vidarbha escalating, cotton growers have urged Indian Prime Minister Dr Manmohan Singh to sack Union textile minister and textile tycoon Dayanidhi Maran immediately. The farmers have said that only such a step will rescue the over five million dying farmers of the state.
Vidarbha Jan Andolan Samiti president Kishore Tiwari has said that Maran is squarely responsible for the worsening cotton crisis. He has demanded his sacking and registration of cases under the Indian Penal Code.
Maran has restricted the exports of cotton to 55 lakh bales as against the earlier permission of 84 lakh bales in the previous year.
Tiwari said that the Union government under the leadership of Prime Minister Dr Manmohan Singh is making hectic efforts to give a new lease of life to debt-ridden farmers of Vidarbha. However, vested interests have taken a rigid and arbitrary decision to ban exports of cotton bales beyond 55 lakh, even though there is a bumper crop and competitive international market price, he said.
He has argued for a lenient policy, which enables farmers to export maximum quantity of cotton to international markets, which would help improve the farmers' crumbling financial condition.
Tiwari pointed out that local private traders and their touts, funded by greedy money lenders, have already ensured that local market price of cotton has gone down from Rs 6,500 to a Rs 2,200 per quintal in recent days.
The social worker has said that the bumper crop this year, coupled with bad climatic condition and poor production in neighbouring cotton growing countries, had ensured a comparatively high price from the beginning of this procurement season.
With this in mind, cotton growers had opted to hold cotton in stock instead of selling it, in anticipation of a higher price. However, unscrupulous private traders have brought down the price deliberately.
"Hundreds of cotton farmers and farm widows have decided to march to New Delhi to meet Prime Minister and UPA convener Sonia Gandhi and urge intervention to resolve the artificial crisis created by vested interests of the mighty textile lobby," Kishore Tiwari has said.
Wednesday, May 11, 2011
Technocraft may sell garment, yarn business for Rs 250cr
Technocraft may sell garment, yarn business for Rs 250cr
Published on Wed, May 11, 2011 at 14:11 | Source : CNBC-TV18
Updated at Wed, May 11, 2011 at 17:44
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Technocraft Ind
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Reliable investment banking sources said that Technocraft Industries is looking to sell its garment and yarn business for Rs 250 crore. CNBC-TV18's Nimesh Shah exclusively reports with more details.
Reliable investment banking sources said that the company initiated talks with couple of other companies and the plans are at a very initial stage. Bankers are exploring this opportunity of selling their garments and yarn business.
The garment and yarn businesses contribute close to 40% of the company’s revenues. Around Rs 25 crore came from the garments business last year and close to Rs 130 crore came from the yarn business.
The management is looking at close to two times seat for the business to be hived off and sold to a third party, which works out to be close to Rs 300 crore. It might be the little stretched value because the textile businesses do not see that kind of traction. The company may not get close to Rs 300 crore, but they are looking between Rs 250 and Rs 300 crore for these two businesses.
The management sources said that they were exploring options of selling these businesses, but nothing has been finalised yet. The bankers working on the deal said that it’s a little challenging because of the valuation and the textile business has not being seeing that kind of traction.
As of now, the company is looking at hiking of these two businesses. They may fetch close to Rs 50 crore, if and when the deal gets finalised in the next couple of months from here on.
Rgds/saurabh
Tuesday, May 3, 2011
Monday, May 2, 2011
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